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Transaction Processing Systems

Transaction Processing Systems. Cross-functional crosses different functional business areas (accounting, finance, inventory management, human resources, etc.) Transactions can include: Banking, Financial, Stocks, etc. Purchases & Orders (phone, Internet, direct)

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Transaction Processing Systems

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  1. Transaction Processing Systems • Cross-functional • crosses different functional business areas (accounting, finance, inventory management, human resources, etc.) • Transactions can include: • Banking, Financial, Stocks, etc. • Purchases & Orders (phone, Internet, direct) • from Airline reservations to Toll Booth Operations

  2. Value of TPS • Efficiency • Paperless Transactions • Reduce manual data entry (errors) • Speed up transaction process • Elimination of redundant steps • Online Transaction Processing (OLTP) • Real-time systems, immediate feedback • Real-time Reports and databases updates

  3. Batch Processing transaction data are accumulated processed periodically used to be necessary because of synchronization problems Real-time Processing also called online immediately processed Syncronization issues What if two people order the same product at the same extact time, but there is only one product left? Batch vs. Real-time

  4. Processing Cycle Data Entry • Collecting and capturing transactions • No longer manual: • Old technologies Bar Codes, Magnetic Strips (credit cards) • New technologies RFID, Smart Cards,

  5. Processing Cycle Transaction Processing • Synchronization Issues: • Which transaction to process next. • Breaking ties • Dependencies • Can’t schedule delivery before credit approval.

  6. Processing Cycle Database Maintenance • TPS helps ensure the databases are up-to-date and correct. • Multiple databases • A single purchase • decreases quantity – Inventory Database • decrease credit – Credit Card Database • increase sales – Sales Database

  7. Processing Cycle Document/Report Generation • Examples • purchase orders • pay checks • sales receipts • invoices • bank statements An MIS also generates reports, but TPS reports are operational (no analysis).

  8. Processing Cycle Inquiry Processing • Examples • when was a purchase made • does a customer have any credits on their account • was an item scheduled for delivery • was a package signed for An MIS also allows for inquiries, but the information available is summarized (or aggregated), i.e., What are the total sales for a whole department? What is the best selling product?

  9. Processing Cycle

  10. Invoices Products Shipped Orders Customer Places an Order Customer Actual Order ScheduleRoutes Planned Shipments Picking List Inventory Status 0 Invoicing ShipmentExecution Order EntrySales Config. Routing &Scheduling ShipmentPlanning InventoryControl

  11. Invoices Products Inventory Data Product Data Order Data Customer Data Prices Fulfilled Orders Shipped Orders CreditStatus Inventory Levels 4. NotifyCustomer 3. AuthorizeCredit 1. Collectorderinformation 2. VerifyProduct #’sIn-stock Customer Places an Order Orders Orders Customer Customer Actual Order ScheduleRoutes Planned Shipments Rejected Orders BackOrders Start of Transaction OpenOrders Picking List Notification Back Orders/Rejected Orders Orders ready to be fulfilled Inventory Status Order EntrySales Config. 0 Invoicing ShipmentExecution Order EntrySales Config. Routing &Scheduling ShipmentPlanning InventoryControl

  12. 0 Transaction Processing System • An Order Entry System affects • accounting data • inventory data • customer data • financial data • invoicing data • Enhanced Feedback: • Inventory is updated at the point of ordering, not at the point of fulfillment. Eliminates surprise backorders.

  13. 0 Enhanced Feedback • Reduce Transactions • Customer can be notified of back order before credit authorization. • Customer could cancel or change order • Avoids un-necessary transactions • Credit check/charge on an order that might be canceled. • Faster Feedback • Pricing or production levels could be set based on current inventory and order status • Increase price if production can’t keep up with orders • Decrease price if inventory levels are high.

  14. Product/Price DB InventoryDB OrderDB CustomerDB Various Reports 0 Manager MIS/DSS ChangeProductPrice Inventory Data Production Data Updates/ additions to Operational Data OrderData TSP PCS AssemblyLine CustomersGrunts

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